Time Warner Inc. (NYSE: TWX) shares rose in early trading today on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
Meanwhile, U.S. stocks opened significantly lower in early trading. The Dow Jones Industrial Average was 58 points lower, or 0.29% to 19895, the S&P 500 fell 7 points, or 0.28% to 2268, while the Nasdaq dropped 22 points, or 0.38% to 5542.
Time Warner Inc. (NYSE: TWX) had its Buy rating reiterated by equities researchers at Pivotal Research in a research note to investors. Pivotal Research currently has a rating of Buy on the shares. The one-year price target of $103.40 is higher than the opening price of $93.98, that has caused a fair amount of other analysts to issue statements on the stock recently. Looking back over the last year, Time Warner Inc. stock has a high of $97.21. Typically, after analysts give a “reiterated rating” report on a stock, they will subsequently issue other updates, such as a price target change.
Shares of Time Warner Inc. (NYSE: TWX) opened at $93.98 yesterday and traded in a range between, $93.73 and $94.40, and last traded at $94.22, which is an increase of $0.54 over the previous closing price.
Time Warner Inc. (NYSE: TWX) now has a market cap of 72.66B.
Time Warner Inc. (NYSE: TWX) Average Daily Trading Volume
694,012 shares crossed the trading desk yesterday, 46 percent lower than the average, out of a total float 770,150,000. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these retain teams of analysts that investigate thousands of stocks, so it is good validation to see them taking a postion in a stock you are considering.
Time Warner Inc. (NYSE: TWX) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
With that in mind, Time Warner Inc. (NYSE: TWX) now has a 50-day MA of $94.74 and 200-day MA of $83.74. It has traded in a 52-week range between $55.53 – 97.21 and today’s last price is 3.08%% lower than the 52 week high of $97.21.
Earnings growth is a critical factor to research when investing in stocks and investors seek companies that have grown their earnings at least 25% or more over the past 3 years.
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